Former Conservative chancellor George Osborne has renewed his call for Britain to rejoin the European Union's customs union, arguing that the UK economy has suffered severe damage since Brexit.
Osborne, who served as chancellor under David Cameron and campaigned for Remain in the 2016 referendum, said Britain's economy had “fallen off a cliff” since leaving the EU and argued that rejoining the customs union offered a practical route to rebuilding economic ties with Europe.
He also accused politicians, business leaders and trade unions of maintaining what he described as a “conspiracy of silence” over Brexit's economic consequences.
Osborne calls for customs union return
In a wide-ranging interview with The Independent, Osborne said it would be difficult for Britain to rejoin the European Union itself in the near future but argued that returning to the customs union would be a more achievable step.
His intervention does not amount to a call for Britain to reverse Brexit completely. Membership of a customs union would deal primarily with trade in goods and customs barriers and would not by itself restore full EU membership.
Osborne has made the argument before. Giving evidence to the Treasury Committee, he said he believed Labour should have rejoined the customs union when it entered government and argued that Brexit had caused obvious economic damage.
His latest comments, however, go substantially further in tone, with the former chancellor comparing Brexit's impact to a major national defeat and saying the economy had fallen sharply since the referendum.
Government still rules out customs union
Prime Minister Andy Burnham's Government has so far maintained Labour's existing red lines on Britain's relationship with the European Union.
In a written parliamentary answer in July, the Government said its position was clear: there would be no return to either the EU single market or customs union.
Ministers have instead focused on reducing trade barriers through sector-specific agreements, including proposed arrangements covering food and drink and closer cooperation on emissions trading.
Downing Street reaffirmed the same position after Burnham entered Number 10, despite the Prime Minister promising a more ambitious relationship with European partners.
Customs union would involve major trade-offs
Rejoining a customs union would have significant implications for Britain's independent trade policy.
A customs union removes tariffs and customs checks on goods moving between participating territories, but members generally apply a common external tariff to goods arriving from outside the bloc.
That means Britain would have less freedom to set its own tariffs and negotiate independent goods trade arrangements with countries outside Europe.
Supporters argue that the reduction in trade friction with the EU — Britain's largest trading partner — would outweigh those restrictions.
Critics counter that such a move would surrender one of the principal economic freedoms secured through Brexit and could complicate or undermine Britain's existing trade agreements with non-EU countries.
Brexit debate returning to Westminster
The intervention comes as pressure grows on the Government from politicians calling for a closer economic relationship with Brussels.
Earlier this year, the European Union's finance commissioner Valdis Dombrovskis said Brussels would be open-minded and ready to engage if Britain wished to explore a customs union.
There has also been renewed parliamentary pressure. A Liberal Democrat bill requiring the Government to begin negotiations on a bespoke UK-EU customs union passed an early Commons stage in December 2025 after a tied vote was decided by the Deputy Speaker's casting vote.
Burnham has nevertheless continued to rule out rejoining the customs union during the current Parliament.
A politically striking intervention
Osborne's comments are politically notable because they come from one of the most senior figures in the Conservative governments that organised the Brexit referendum.
As chancellor between 2010 and 2016, Osborne was one of the leading voices warning of the economic risks of leaving the European Union.
His latest intervention is therefore likely to reopen arguments over whether Britain's post-Brexit settlement should now be substantially rewritten — and how far Burnham is prepared to go in rebuilding economic ties with Brussels.
Sources
- The Independent via Yahoo News — George Osborne interview on Brexit and the customs union
- UK Parliament — George Osborne evidence to the Treasury Committee
- UK Parliament — Government position on the EU customs union
- The Independent — Burnham commits to Labour's Brexit red lines
- The Independent — EU says it is open-minded about a UK customs union